RBI directs rural banks to become member of credit info co
The Reserve Bank on Wednesday directed regional rural bank (RRBs) to comply with Credit Information Companies Act and take immediate steps to become member of at least one of the credit information companies.
July 24, 2013 / 22:49 IST
The Reserve Bank on Wednesday directed regional rural banks (RRBs) to comply with Credit Information Companies Act and take immediate steps to become member of at least one of the credit information companies.
"...it has come to our notice that a large number of RRBs are not members of any Credit Information Company as required under the Act.
Therefore, immediate steps may be taken by RRBs to become members of at least any one CIC," RBI said in a notification. Credit Information Companies (Regulation) Act, 2005 became operationalised in 2006. As per the Act, every credit institution has to become member of at least one credit information company within a period of three months from commencement of the Act or any extended time allowed by the Reserve Bank on application. "...they (RRBs) would be required to take membership of at least one credit information company and provide credit data in the format as required by the Credit Information Company (CIC)," RBI said.A CIC collects and maintains records of an individual's payments pertaining to loans and credit cards which are submitted to the CIC by banks and other credit institutions, on a monthly basis. The information is used to create credit report which are provided to credit institutions to help them evaluate and approve loan applications or any other credit applications. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
